Final answer:
Adam Smith supported the regulatory power of competition in free markets, Friedrich Hay Hayek championed minimal government intervention for economic freedom, Milton Friedman believed the government should not actively control the money supply, and John Maynard Keynes advocated for necessary government intervention for economic stability.
Step-by-step explanation:
Adam Smith believes that competition is a regulatory force. Friedrich von Hayek believes that less government intervention gives people more economic freedom. Milton Friedman believes that government should not control the money supply. John Maynard Keynes believes that government intervention is necessary for stability.
Adam Smith, known as the father of modern economics, espoused the belief in the efficiency of free markets guided by the "invisible hand," where competition among businesses naturally regulates the economy. Friedrich Hayek, an advocate of Austrian economics, staunchly defended the free-market system and warned that government regulation could lead to totalitarianism and stifle economic freedom. Milton Friedman, a proponent of Monetarist theory, argued that the money supply should increase with the economy but opposed active management by the Federal Reserve. John Maynard Keynes, representing Keynesian economics, held that during times of economic downturns, active government intervention and spending were crucial to achieving stability.